This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. International Business Machines's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $67.07. International Business Machines's 10-Year median PS Ratio is 1.8267. Therefore, the Median PS Value for today is $122.52.
As of today (2024-04-24), International Business Machines's share price is $183.435. International Business Machines's Median PS Value is $122.52. Therefore, International Business Machines's Price to Median PS Value for today is 1.50.
The historical rank and industry rank for International Business Machines's Median PS Value or its related term are showing as below:
IBM'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.7 Med: 1.08 Max: 1.5
Current: 1.5
During the past 13 years, the highest Price to Median PS Value of International Business Machines was 1.50. The lowest was 0.70. And the median was 1.08.
IBM's Price-to-Median-PS-Value is ranked worse than 77.79% of 1022
companies
in the Software industry
Industry Median: 0.96
vs IBM: 1.50
International Business Machines Median PS Value Historical Data
The historical data trend for International Business Machines's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, International Business Machines's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
International Business Machines Price-to-Median-PS-Value Distribution
For the Software industry and Technology sector, International Business Machines's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where International Business Machines's Price-to-Median-PS-Value falls into.
International Business Machines Median PS Value Calculation
International Business Machines's Median PS Value for today is calculated as
10-Year Median PS Ratio is 1.8267.
International Business Machines's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $67.07.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Business Machines (NYSE:IBM) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
International Business Machines's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
183.435
/
122.52
=
1.50
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
International Business Machines Median PS Value Related Terms
Thank you for viewing the detailed overview of International Business Machines's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
International Business Machines (International Business Machines) Business Description
IBM looks to be a part of every aspect of an enterprise's IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients—which includes 95% of all Fortune 500. While IBM is a B2B company, IBM's outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.
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